Episode
370. Nobody Wanted This Vacant Warehouse. He Bought It With $0 Down in 45 Days
- Published
- Apr 6, 2026
- Duration seconds
- 2445
- Processing state
not_requested- Canonical source
- https://www.tylercauble.com/podcast/episode370
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Summary
Key Takeaways: Transition to commercial: Matt moved from student housing to commercial to reduce headaches, work with business owners, and gain more control over value via NOI and cap rates. Deal source & story: Found the property on Crexi , often written off by investors. Former owner retired, left the building ~70% vacant but already subdivided with good bones (1989 build, mostly cosmetic issues). Location & upside: Building is next to Lowe’s , effectively leveraging corporate site selection. Strategy is forced appreciation via lease-up at market rents and then refinancing at a conservative ~9% cap. Financing structure: Purchase price $240K , fully funded with private money (family + local investors) at ~10% interest, 2-year term, interest/principal deferred, no prepay penalty —pitched as a safe, bond-like investment. Due diligence wins: Held $5K in escrow for seller’s junk; used itemized cost estimates (with AI help) to justify keeping it, then bartered with contractors to clear it at no out-of-pocket cost . Verified floor plans and discovered a tenant had taken an extra 1,000 sq ft ; renegotiated to increase rent (to ~$2,000/mo) and convert to triple net . Main risk: Timeline to stabilize and refinance within 2 years; Matt wishes he had negotiated an extension option with private lenders. Support & underwriting: Leaned on mentors, local brokers/appraisers, and the accelerator community (notably Chris Thorndike ) to stress-test rents, cap rates, and long-term exit strategies. Tax strategy: Pushed to close on Dec 30 to enable cost segregation and bonus depreciation for that tax year. How to replicate: Don’t ignore Crexi/LoopNet —good “hiding in plain sight” deals exist. Target Boomer-owned businesses where owners are retiring and want to sell or walk away…